The S&P/ASX 200 Index (ASX: XJO) is highly unlikely to rocket 50% in the next 12 months, but this ASX 200 share just might.
That's according to the team at Macquarie Group Ltd (ASX: MQG), who expect strong outperformance from DigiCo Infrastructure REIT (ASX: DGT) shares in the year ahead.
In morning trade today, DigiCo shares are down 1.8%, changing hands for $2.67 apiece.
We'll get to Macquarie's bullish outlook for the ASX 200 stock in a tick.
But first…
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What does DigiCo do?
If you're not familiar with DigiCo, the company is a real estate investment trust (REIT). It began trading on the ASX on a normal settlement basis in December.
And, as the name implies, the ASX 200 share is focused on data centres and the expected ongoing demand growth from the AI revolution.
According to the company's prospectus:
The asset class is underpinned by structural tailwinds including increasing growth in data creation and consumption, digitalisation of businesses, growing reliance on the cloud, adoption of next generation technologies including artificial intelligence, the acceleration of the technology sector globally and increased outsourcing of data centre services to specialised operators.
To date, the ASX 200 share has struggled, with the DigiCo share price down 39.5% in 2025.
But DigiCo CEO Chris Maher is optimistic about the growth outlook for the year ahead.
At the company's results release on 18 August, Maher noted, "Our sales pipeline has materially exceeded expectations at the time of acquisition, supported by surging demand in AI, hyperscale cloud, and enterprise segments."
Maher added:
The commencement of the SYD1 9MW expansion, alongside progress in major developments such as Los Angeles and Chicago, ensures we are well positioned to meet this demand. These projects are designed to deliver high-quality, high-density capacity that support our customers' most advanced workloads, including AI and high-performance computing.
Why Macquarie forecasts big gains for the ASX 200 share
In a new report released on Wednesday, Macquarie noted that DigiCo has, "Attractive double-digit earnings growth profile medium term (on a relatively undemanding multiple), with development adding upside to our base case."
According to the broker, the ASX 200 share's earnings before interest, tax, depreciation and amortisation (EBITDA) should increase at a compound annual growth rate (CAGR) of 14% to 36% over the next five years.
Macquarie noted:
Base case for +20% EBITDA CAGR over FY25A-FY30E; risk/reward skewed to the upside. Our base case excludes contributions from development assets where relevant approvals and/or power have not yet been secured (eg, LAX1 & LAX2, BNE3). Our bull case includes all proposed developments, resulting in a FY25A-FY30E EBITDA CAGR of +36%. Conversely, our bear case assumes no development resulting in a FY25A-30E EBITDA CAGR of +14%.
And the broker also likes DigiCo's current valuation.
Macquarie added:
Trading attractively relative to peers, on a better growth profile. DGT's EV/EBITDA multiple reduces materially over time as the development pipeline drives +28% EBITDA CAGR over FY25A-28E, superior to the +11% median of its comps.
Connecting the dots, Macquarie has an outperform rating on the ASX 200 share with a $3.90 price target. That represents a potential upside of more than 46% from the current DigiCo share price.
